Multi-State Non-Bank Supervision Groups Release Annual Reports

Washington, D.C. – Three working groups of state regulators charged with coordinating supervision of multi-state, non-depository financial services providers have issued annual reports providing significant insight into the non-bank financial market and regulatory developments over the last year.

Overall, the reports show an increase in multi-state and state-federal collaboration and communication due to maturing coordinated procedures, and more efficient examination processes as a result of advanced use of regulatory technologies such as the Nationwide Multistate Licensing System (NMLS). The reports also provide a comprehensive view of the key challenges facing the non-bank financial services industries.

The State Coordinating Committee (SCC), the multi-state regulatory oversight group responsible for the coordination of multi-state non-bank financial services exams with the Consumer Financial Protection Bureau (CFPB), reported continued progress in 2015 to standardize and implement appropriate regulatory approaches to the coordinated supervision of non-bank financial services. Multi-state examinations with the CFPB that were overseen by the SCC in 2015 included mortgage origination and servicing, debt collection, payday lending entities, and for the first time, money services businesses. The full SCC 2015 Annual Report is available here.

The Multi-State Mortgage Committee (MMC) serves as the main coordinating body for the state system of mortgage supervision. Findings of the MMC’s 2015 servicing exams include violations and deficiencies related to default servicing and loss mitigation, escrow maintenance and analysis, loan modifications, and error resolution, among others. Violations and deficiencies found during MMC origination examinations were related to oversight of third-party agents, collection of unallowable fees, and unlicensed activity, among others. The full MMC Annual Report is available here.

The Multi-State MSB Examination Taskforce (MMET) is the coordinating body responsible for multi-state MSB supervision. In 2015 the group assumed, for the first time, full responsibility for scheduling joint MSB exams. A total of 62 multi-state MSB exams were conducted in 2015. The full MMET Annual Report is available here.

The Conference of State Bank Supervisors (CSBS) is the nationwide organization of banking regulators from all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands. State banking regulators supervise nearly 4,850 state‐chartered financial institutions. Further, most state banking departments also regulate a variety of non-bank financial services providers, including mortgage lenders. For more than a century, CSBS has given state supervisors a national forum to coordinate supervision of their regulated entities and to develop regulatory policy. CSBS also provides training to state banking and financial regulators and represents its members before Congress and the federal financial regulatory agencies.